Invest Data Consulting Ltd

PROFIT-TAKING, VOLATILITY MAY CONTINUE AMIDST REPOSITIONING FOR QUARTERLY, FULL-YEAR REPORTS Trading on the Nigeria Stock Exchange (NSE) was once more interesting, mixed and highly volatile at the same time to start the week Monday on negative note, as the market bowed to selling pressure amidst profit talking and stock revaluations to match their fundamental strength after more prices hit their new 52-week high. Volume was huge, breadth flat, while the composite NSE All-Share index experienced a pullback to close the day. Profit taking among the conglomerate and banking stocks were unprecedented as Transnational Corporation of Nigeria (Transcorp) and some first-tier banking stocks suffered losses. The day started out with a little pop to the upside, and  had a  run up which was  consolidated midmorning, reaching intraday  highs of 45,321.82 around the noon hour, before it pulled back early afternoon to touch a low of 44,748.20, where it held support...

Looking closer to the market reaction to earnings reports released for Q3 2017 will give an insight into what to expect of the  full year earnings reports when they are presented to the Nigerian Stock Exchange (NSE) in 2018, considering the  economy recovery as the monetary and fiscal authorities try to complement each other at this point. It must be noted that the market situation today and performance of 2016 are different, given that the factors on ground in the market currently are very much positive because the economy has finally come out of recession and continuing on the path of recovery and growth. These factors have equally reflected on the market and companies fundamentals.  The Nigerian stock market is truly becoming a barometer to measure actually activities in the economy, as some analysts have argued, judging from the fact that it was the first to go into recession long before the Nigerian economy began to exhibit the traits, closing negativ...